Energy Sector Update for 07/26/2016: SGY, CNXC, SDLP
Top Energy Stocks
Energy stocks were edging higher Tuesday, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 were up 0.3% as a group. Crude oil for September delivery was down 24 cents at $42.89 per barrel while September natural gas futures were a penny lower at $2.70 per 1 million BTU.
In company news, Stone Energy ( SGY ) rose Tuesday after the oil and natural gas company late yesterday said its Q2 production exceeded the top end of its prior forecasts.
Production during the three months ended June 30 grew to around 29,000 barrels of oil equivalent per day, consisting of 59% oil, 32% natural gas and 9% natural gas liquids. Those volumes included around 23,000 barrels per day from the Gulf of Mexico and about 6,000 barrels daily from Appalachia.
The company also said it resumed production from the Mary field in late June, with July production averaging around 75 million cubic feet equivalent of natural gas per day and is expected to rise to more than 125 million cubic feet per day in August. Stone Energy also has 57 wells averaging about 60 million cubic feet each currently shut in because of downstream constraints but expects to bring most of those wells online over the next month.
SGY shares were up almost 15% at $13.71 apiece, easing just three cents from their session high.
In other sector news,
(+) CNXC, (+11.9%) Chooses against paying its quarterly distribution to subordinated unit-holders for Q2, citing efforts to improve the company's financial metrics.
(-) SDLP, (-27.6%) Morgan Stanley downgrade to equal weight from overweight.
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